Mumbai: IL&FS Securities Services has filed a criminal case against the Economic Offences Wing of Delhi Police in the Delhi High Court, a development that could affect the efforts of the new management at InfrastructureNSE 0.00 % Leasing & Financial Services (IL&FS) to sell the securities business.
In its petition, IL&FS Securities has called an EOW order illegal, which restrained the company from transferring mutual fund units deposited as collateral by a broker that had failed to meet a shortfall to close open positions. The order had come on a petition by the broker, Allied Financials. The IL&FS subsidiary, which was the clearing entity for the option contracts, said the EOW had acted without any FIR and that there were no provisions under the law that allowed it to pronounce such an order.
